Factors Affecting the Profitability of Foreign Exchange Bureaus: Case of Selected Forex Bureaus in Nairobi Central Business District

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Date

2015-04

Journal Title

Journal ISSN

Volume Title

Publisher

Daystar University, School of Business and Economics

Abstract

This study sought to investigate the factors affecting the profitability of foreign exchange bureaus in Nairobi Central Business District. The study was steered by the following objectives: to determine how legal and regulatory framework affected the profitability of foreign exchange bureaus in Nairobi Central Business District to find out how organizational management affected the profitability of foreign exchange bureaus in Nairobi Central Business District, to examine how competition affects the profitability of foreign exchange bureaus in Nairobi Central Business District and to establish how business ethics affects the profitability of foreign exchange bureaus in Nairobi Central Business District Association Review of the applicable literature was done. The sample size was 33 licensed forex bureaus in Nairobi Central Business District. A combination of both structured and semi-structured questionnaires were used to collect primary data while data analysis was done using Statistical Package for Social Science. The findings showed that the above factors affected the profitability of foreign exchange bureaus in Nairobi Central Business District. The key areas of recommendation included the adoption differentiation strategy through effective customer service, lobbying for legal framework amendments, and adoption of a clear strategic direction, implement strategic planning, devise a formal organizational structure and ensure effective allocation of resources and investment on training programs relating to business ethics. The areas identified for further research included determining if the same factors affect other financial institutions. Further research should also centered on correlating the past and present performance of foreign exchange bureaus so as to develop a tool that could be able to explain profoundly the factors affecting profitability of not only the foreign exchange bureaus but also foreign exchange markets in general.

Description

Master of Business Administration in Strategic Management

Keywords

Foreign Exchange Bureaus, Nairobi Central Business District

Citation

Sabatia, K.C. (2015). Factors Affecting the Profitability of Foreign Exchange Bureaus: Case of Selected Forex Bureaus in Nairobi Central Business District: Daystar University, School of Business and Economics. Nairobi.